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Income inequality in Switzerland remains stable after redistribution

Income inequality in Switzerland has remained stable according to a report published by Switzerland’s Federal Statistical Office.

Inequality

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A key measure of inequality involves dividing the income share of the top 20% by that of the bottom 20%, a measure known as S80/S20. 1 is complete equality.

In 2015, the latest figure, the S80/S20 for Switzerland was 38.2, which means the top 20% had 38.2 times the income of the bottom 20%. This however was before tax and other redistribution.

After the redistributive effects of tax and welfare, the ratio dropped from 38.2 to 4.8. As a result, the income share of the bottom 20% rose from 1.2% to 7.8%, and the share of those in the top 20% slid from 44.5% to 37.2%. The share of the 60% in the middle remained roughly the same: 54.3% before redistribution and 55.0% after redistribution.

While raw income inequality before redistribution, measured using the S80/S20, climbed significantly from 19.0 to 38.3 between 2000 and 2015, after tax and welfare payments, it rose only modestly from 4.3 to 4.8.

Full story here
About Le News
Le News
The newspaper Le News is a free, quality, local English language newspaper launched on 31 October 2013. Le News fills a gap in local Swiss media for the numerous English-speakers living and visiting Switzerland. In late January 2015 we decided to put our print medium on hold and focus on our digital media presence.
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Permanent link to this article: https://snbchf.com/2018/01/news-income-inequality-switzerland-remains-redistribution/

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